Bangladesh’s labour law is federal, but enforcement is inconsistent and documentation requirements are heavier than most employers expect. Statutory gratuity kicks in at 5 years, severance formulas vary by termination type, and social security is mandatory but limited in scope. Few global EORs cover Bangladesh with operational depth — the ones that do are worth paying attention to.
Bangladesh Employment at a Glance
| Detail | Value |
|---|---|
| Currency | Bangladeshi Taka (BDT) |
| Official language | Bengali (English common in business) |
| Employment law | Bangladesh Labour Act, 2006 (amended 2013, 2018) |
| Payroll frequency | Monthly |
| Social security | Workers’ Welfare Foundation Fund |
| Tax authority | National Board of Revenue (NBR) |
| Minimum wage | Varies by sector (garment: BDT 12,500/month) |
| Standard working hours | 48 hours/week (8 hours/day) |
| Annual leave (minimum) | 10 days (1 day per 18 working days completed) |
| Public holidays | 11 per year |
Employer Costs and Social Security
Bangladesh’s mandatory employer costs are lower than most Asian markets, but they add up when you factor in gratuity provisions.
| Obligation | Rate |
|---|---|
| Workers’ Welfare Foundation Fund | 5% of net profit (applicable to establishments with 100+ workers) |
| Workers’ Participation Fund | 5% of net profit (applicable to establishments with 100+ workers) |
| Group insurance | Required for establishments with 200+ workers |
| Gratuity | 30 days’ wages per year of service (after 5 years) |
For EOR employment of a handful of professional hires, the Workers’ Welfare and Participation Funds typically don’t apply. Gratuity is the big-ticket item — budget for it from day one even though it only vests at 5 years.
Key Employment Law Provisions
Leave entitlements
- Annual leave: 1 day per 18 days worked (roughly 10 days/year for full-time)
- Casual leave: 10 days per year
- Sick leave: 14 days per year (with medical certificate)
- Maternity leave: 16 weeks (8 weeks pre-delivery, 8 weeks post-delivery)
- Festival leave: 11 days per year
Probation and notice periods
Probation can last up to 6 months. Notice periods depend on payment type:
- Monthly-rated workers: 60 days’ notice or pay in lieu
- Other workers: 30 days’ notice or pay in lieu
Termination and severance
Termination without cause requires notice plus compensation of 30 days’ wages for each completed year of service. Retrenchment (layoff) carries the same formula. Termination for misconduct requires a formal inquiry process — skip it and the termination is voidable.
Tax Obligations
Bangladesh operates a progressive income tax system. Your EOR handles monthly TDS (Tax Deducted at Source) withholding:
| Taxable Income (BDT) | Rate |
|---|---|
| Up to 350,000 | 0% |
| 350,001–450,000 | 5% |
| 450,001–750,000 | 10% |
| 750,001–1,150,000 | 15% |
| 1,150,001–1,650,000 | 20% |
| Above 1,650,000 | 25% |
How Long Does EOR Onboarding Take in Bangladesh?
Bangladesh is not a fast market:
- Standard onboarding: 5–10 business days
- Work permit required (foreign national): 4–8 weeks
Expect longer than Singapore or India. Documentation requirements are heavier, and local registration can take time depending on the EOR’s operational setup.
Top EOR Providers for Bangladesh
Bangladesh is a niche market. Only a few providers cover it with real operational depth:
- Payoneer WFM — Main differentiator is Bangladesh coverage with operational confidence. $199/month.
- Remote People — One of the few offering Bangladesh as a first-class market. $199/month.
- Multiplier — Covers Bangladesh, though smaller markets see slower support escalation.
Frequently Asked Questions About EOR in Bangladesh
Is gratuity mandatory even if I only hire one person? Yes. The Bangladesh Labour Act requires gratuity payment for all workers who complete at least 5 years of continuous service, regardless of establishment size. Budget for it from the start — it’s 30 days’ wages per year of service.
Can I hire a foreign national in Bangladesh through an EOR? Yes, but work permits are required and processing is slower than most Asian markets. The EOR handles the work permit application, but approval timelines are variable and depend on the Board of Investment and Department of Immigration.
What happens if I terminate someone during probation? During probation, no notice is required for monthly-rated workers who have not completed one month of service. After that, the standard notice periods apply. Severance compensation (30 days per year) only applies to confirmed employees with at least one year of service.
How does Bangladesh minimum wage work for tech or professional hires? Minimum wages are sector-specific and set by the Minimum Wage Board. For professional or tech roles not covered by a sector-specific order, there’s no universal minimum floor — but your compensation must be reasonable and consistent with the employment contract.
Do I need to register with any Bangladesh government body to hire through an EOR? No. The EOR entity is the registered employer. You don’t need a trade license, RJSC registration, or local entity. That’s the point.
